In customer cost hierarchy, the cost of activities related to specific channel of distribution is classified as
Correct answer: C. distribution-channel costs
- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation
Costs relating to a particular distribution route or channel, such as a retail or wholesale channel, are classified as distribution-channel costs. Corporate-sustaining costs support the entire organisation rather than one channel.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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